Purpose: The choice of a bottle of wine is affected by the presence of attributes that are searched by consumers and can be evaluated before the purchase. The aim of the paper is to analyze the effect of some search attributes on wine price variability. Design/methodology/approach: The Hedonic Price Model has been considered since it allows explaining how the price of wine varies depending on its main quality attributes. The analysis has been based on a sample of wines made in Puglia, Italian region characterized by a tradition in wine production and consumption. Data have been collected from a wine guidebook considering the years 2012 and 2013. Findings: The study provided a measure of the market value of some search attributes for wines produced in Puglia. Attributes as alcoholic content, age and score given by experts, influence price variability allowing wines to obtain a premium price. The name of the Protected Designation of Origin has less influence on price variability than the Protected Geographical Indication (PGI), whereas the name of the variety seems not to have high influence with the exception of less known and locally grown varieties. Practical implications: The study’s results may be of interest for marketers and policy makers of wine industry. Managerial implications could refer to the importance of differentiation strategies aimed to market segmentation and to the pricing strategy. Policymakers could also find interesting hints about the influence of the different appellations and the importance of minor autochthonous grape varieties that need to be preserved.

Effects of search attributes on price variability: empirical evidence for wines from Puglia region

SECCIA, ANTONIO;NARDONE, GIANLUCA
2014

Abstract

Purpose: The choice of a bottle of wine is affected by the presence of attributes that are searched by consumers and can be evaluated before the purchase. The aim of the paper is to analyze the effect of some search attributes on wine price variability. Design/methodology/approach: The Hedonic Price Model has been considered since it allows explaining how the price of wine varies depending on its main quality attributes. The analysis has been based on a sample of wines made in Puglia, Italian region characterized by a tradition in wine production and consumption. Data have been collected from a wine guidebook considering the years 2012 and 2013. Findings: The study provided a measure of the market value of some search attributes for wines produced in Puglia. Attributes as alcoholic content, age and score given by experts, influence price variability allowing wines to obtain a premium price. The name of the Protected Designation of Origin has less influence on price variability than the Protected Geographical Indication (PGI), whereas the name of the variety seems not to have high influence with the exception of less known and locally grown varieties. Practical implications: The study’s results may be of interest for marketers and policy makers of wine industry. Managerial implications could refer to the importance of differentiation strategies aimed to market segmentation and to the pricing strategy. Policymakers could also find interesting hints about the influence of the different appellations and the importance of minor autochthonous grape varieties that need to be preserved.
978-3-00-047628-0
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11369/330953
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